Emerging Markets 01 (May 08 - Dec 11)

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See Heat-Map in the link:-

http://www.epfr.com/

Second Week of Outflows ...

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Emerging stock funds see outflows

EMERGING market equity funds reported a second consecutive week of outflows as escalating concerns over Europe's sovereign debt crisis dented demand for riskier assets, according to Citigroup Inc.

Funds investing in developing nation stocks lost an overall US$1.03 billion during the week ended May 25, compared with net outflows of US$1.64 billion the previous week, Citigroup analysts led by Markus Rosgen said in a report yesterday, citing data compiled by EPFR Global.

Still, Lyxor Asset Management, the wholly owned unit of Societe Generale, increased developing nation shares to 5 per cent of portfolio holdings 'a few weeks ago' from almost nothing at the start of the year as valuations become more attractive, Mathieu Vaissie, a senior portfolio manager, said in an interview in Singapore on Tuesday.

MSCI's emerging markets stock gauge is valued at 11.1 times estimated profits, compared with a multiple of 12.8 times for the developed countries measure, according to data compiled by Bloomberg.

Source: Bloomberg

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Fund flow data paint a brighter picture.

EPFR Global-tracked funds showed Asia-ex-Japan equity funds were the only major emerging markets fund group, to post inflows in the last week of May.

Source: Reuters

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Emerging Stocks Rise, Set for Biggest Weekly Advance in Six on Fund Flows By Weiyi Lim

Emerging-market stocks rose, with the benchmark index set for the biggest five-day rally in six weeks, amid speculation economic growth will weather a faltering recovery in developed nations.

Emerging-market equity funds attracted about $820 million in the week ended June 1, snapping two consecutive weeks of outflows, Citigroup Inc. wrote in a report today, citing data from EPFR Global. In India, foreign investors became net buyers of the nation’s equities this year, data through June 1 showed.

Stocks in the benchmark index for developing equities are valued at 11.1 times estimated earnings, less than the multiple of 12.7 times for developed countries.

Asia’s developing economies will grow 8.4 percent this year and next, the International Monetary Fund projected on April 11. Thailand’s economic growth accelerated in the first quarter to the fastest pace in a year.

Funds investing in developing-nation stocks globally took in $677 million while those focusing on Asia, excluding Japan, drew $270 million, Citigroup analysts Rosgen, Kelly Kwok and Yue Hin Pong wrote in the report today.

Latin America funds had net inflows of $104 million, while those for Europe, the Middle East and Africa “lagged” behind, according to the report.

Overseas funds acquired a net 6.9 billion rupees ($154 million) of Indian equities on June 1, turning them into net buyers of 490 million rupees of the equities this year, according to data on the website of the Securities and Exchange Board of India.


http://www.bloomberg.com/news/2011-06-0 ... flows.html

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Inflows into Asia & Latin America.

See heat-map:-
http://www.epfr.com/

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High Probability ETFs for the Next 5 Days (as of 6/29/2011)

Name / Symbol / RSI(2)
1) iShares S&P Latin America 40 Index Fund ETF ILF 96.44
2) WisdomTree India Earnings Fund ETF EPI 96.26
3) SPDR KBW Insurance ETF KIE 94.20
4) iShares Dow Jones U.S. Financial Sector Index Fund ETF IYF 93.39
5) iShares MSCI Brazil Index Fund ETF EWZ 93.34


Source: Trading Markets

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Global emerging markets funds experienced outflows of around $7.7 billion over the last week, the biggest outflow after January 2008, UBS said in a morning note on Monday.

Source: Reuters

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Emerging Markets Typically Soar From Current Levels
By Dr. Steve Sjuggerud
Monday, October 3, 2011

You REALLY need to catch a mega-bull market in emerging markets at least once in your lifetime…

If you just buy an emerging markets fund, a bull market here is usually good for a few times your money… without a whole lot of risk.

Right now, the conditions are ripe for another mega-bull market in emerging markets. Let me show you…

According to our True Wealth Systems databases, emerging market stocks are incredibly cheap right now.

For example, they're paying a 4% dividend yield. Dividends reached this high in 1985… And emerging market stocks soared fourfold in less than a year.

Yields came close in 1993 and 2003. In both cases, emerging market stocks soared threefold. It happened in the bust of 2008-2009, and emerging market stocks nearly doubled after that.

It's happening again right now… and now is a much better time than in 1985 or any other time in history, for two significant reasons…

First, many of these emerging economies were a mess back then, with piles of debt and "garbage" currencies. Today, many have their acts together. (Brazil is a good example.)

Second, interest rates are much lower in the world today – U.S. Treasury bonds pay less than 2%. So a 4% dividend in emerging market stocks today is a better deal than a 4% dividend was back in 1985.

Another way to look at how cheap these stocks are is the price-to-book ratio. It just hit its cheapest level since 1985… Price-to-book is a rough gauge of liquidation value. (It's VERY rough. But it's all we have to go on that's easy to obtain with a long history.)

Right now, emerging market stocks are trading below book value… This is a rare occurrence.

It's happened twice: in 1985… and in 2009. If you'd bought when emerging markets traded below book value both times, you'd have made a heck of a lot of money in a short period of time. Take a look:

My point is simple: Emerging markets' stock markets are dirt-cheap. When they get this cheap, you can make a lot of money.

The usual way to trade emerging markets is through shares of iShares' popular MSCI Emerging Markets Index Fund (EEM).

But the WisdomTree Emerging Markets Equity Income Fund (DEM) is paying a high 4% dividend yield. In our zero-percent world, that's worth considering, too.

You want to catch at least one emerging markets mega-bull market in your lifetime. The setup conditions we're seeing now are near-identical to previous mega-bull markets.

When the uptrend returns to emerging markets, we'll be buyers… You should be, too.

Source: Daily Wealth

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The Secret to Making Triple Digits Once Emerging Markets Hit Bottom By Larsen Kusick, analyst, Phase 1 Investor
Monday, October 10, 2011


Last week, my colleague Matt Badiali showed readers his "shopping list" of resource companies with the best assets in the world.

The resource sector isn't the only area in a downtrend right now. Brazil's Bovespa, China's Hang Seng, and India's Sensex are all more than 25% below their highs. (U.S. stocks are down about 15%, as measured by the S&P 500.)

Emerging market stocks are likely heading even lower. But right now is a good time to start putting together our own shopping list of "trophies."

Buying dominant companies in undeveloped countries following a bear market can be hugely profitable…

Take Baidu for example. Baidu is China's homegrown version of Internet search giant Google. During the worst of the 2008 financial crisis, shares of Baidu were down more than 70% from their highs. Over the next two years, the stock soared more than 1,000%.

"Emerging markets" are countries whose economies are still catching up to the U.S. and Europe. That means there's still a lot of growth ahead for even basic businesses like telecommunications, construction, and transportation.

Here's the secret to making triple-digit gains in these markets: You didn't have to "catch the bottom" to make a ton of money. All you needed to do was wait for a new uptrend before hitching along for the ride.

Investors who bought Baidu six months after the bottom still made 200% or more over the next year or so. And they were taking a lot less risk with their money.

To lower your risk even further, you can stick with the biggest, best companies. They'll often be more volatile than their U.S. counterparts. But they generate lots of cash and dominate their markets.

Below are some of my favorite "trophy" emerging market companies:

Keep in mind that global stock markets are still in a strong downtrend. That means it's safer to stay on the sidelines for now. No one knows how far these names could drop.

The safer bet is to watch these high-quality companies and wait for the uptrend to start. They'll be plenty of upside left… and much less risk.

Be patient. Every new bull market produces dozens or even hundreds of triple-digit gains for investors. The next one simply hasn't started yet.

www.growthstockwire.com

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Emerging economies slow down by Natallie Cai
Thursday, October 13, 2011

Emerging economies saw the slowest growth in 27 months as their manufacturing sectors contracted in the third quarter, according to HSBC.

It is unlikely that emerging nations can fully offset "endemic weakness" in the developed world, HSBC's chief economist Stephen King said yesterday.

The HSBC Emerging Markets Index- a quarterly indicator based on 21 purchasing managers' surveys in 16 emerging economies - fell to 51.9 in the third quarter from 54.2 percent in the second quarter.

Manufacturing output snapped nine straight quarters of growth, contracting in the June- September period amid sluggish global demand.

The industrial output in almost all emerging economies declined, with the biggest drop taking place in South Africa and Taiwan.

China and Singapore also booked "marginal and modest" output reduction.

"It is now apparent that world trade growth peaked in the first quarter. Companies in the emerging world have reacted by clearing their order backlogs at a faster rate than before," King added.

The services sector grew at the weakest pace in nine-quarters. China's service industry is set to weaken further over the next year.

But inflation of input costs peaked in the first quarter amid persistent tightening policies.

"Abating inflationary pressures creates a little more room for policy flexibility," said King. But he does not expect China to launch stimulus on a scale similar to that in 2008.

http://www.thestandard.com.hk/news_deta ... 11013&fc=7